Heritage Insurance plays down Hurricane Matthew liabilities

As Hurricane Matthew sweeps through the Caribbean Heritage Insurance Holdings Inc (NYSE:HRTG) said its associated liabilities may not be as severe as feared.

Shares in Heritage rose a dollar to US$13.46 as Bruce Lucas, chairman and chief executive officer of Heritage, appeared on CNBC yesterday and said the company’s estimated loss scenario appears more favorable than it did 24 hours earlier.

Lucas’s comments were based on Hurricane Matthew’s most recent trajectory and the company’s latest risk modeling guidance.

“While only a preliminary estimate, based on what we see now, estimated losses could be approximately US$500 million, well within our $1.9 billion catastrophe reinsurance coverage tower,” Lucas told the broadcaster.

The hurricane has largely remained east of the USA’s Florida coast and is currently battering Haiti, where the death toll has risen above 400, according to reports.

The BBC reported that some 50 people were reported as fatalities in the town of Roche-a-bateau, while the nearby city of Jeremie saw 80% of its buildings flattened.

At 11.00 EDT, the National Hurricane Center advised that the western eyewall of Hurricane Matthew was brushing portions of the north-east coast of Florida.

The hurricane warning has been extended north-eastward to Surf City in North Carolina. Meanwhile, the Hurricane Warning from Sebastian Inlet to Cocoa Beach Florida has been changed to a Tropical Storm Warning, the Center advised.